Zoomcar, an Indian car-sharing platform, has announced a $10 million investment from Ananda Small Business Trust, an affiliate of Innovative International, for a convertible promissory note issued by Zoomcar to Ananda Trust.
- Founded in 2013, ZoomCar is a self-drive-focused car rental company that connects vehicle owners with guests, who choose from a selection of cars for use at affordable prices, allowing individuals to rent vehicles by the hour, day, week, and month.
- The self-drive car platform, which prides itself as the world’s largest emerging market-focused car-sharing platform, currently has over 3 million active users and operates in over 50 cities in India, Indonesia, Vietnam, and Egypt. The firm manages over 25,000 cars on its platform, promoting sustainable transportation.
- Just last week, Zoomcar, set to soon be a publicly listed company announced a merger with Innovative to list on Nasdaq. This merger agreement valued the combined company at a pro forma enterprise value of approximately $456 million.
- With the completion of the merger, the merged company will be renamed Zoomcar Holdings and a new agreement will be signed under which Ananda will subscribe for 1 million newly issued shares in the consolidated company at a purchase price of $10 per share.
- The amount will be invested in exchange for a convertible bond issued by Zoomcar to Ananda Trust. In addition, the transaction is subject to other customary closing conditions, including registration rights. If the deal goes through, the subscription contract will be automatically terminated.